reinhardt and dr. vincent reinhardt found in their research, quote, real per-capita gdp growth rates are significantly lower during the decade following severe financial crisis. in the ten year window following a severe financial crisis unemployment rates are significantly higher than in the decade that preceded the crisis. the decade of relative prosperity prior to the fall was important we fuelled by an expansion in credit and rising leverage that spans ten years. it is followed by all like the period of retrenchment that most often begin only after the crisis and last almost as long as the credits surge. in other words we could see a period of low growth and relatively high unemployment for some time because we are recovering from a severe financial crisis. the most severe since the great depression. if we look at private sector job growth we see it has improved dramatically from where we were in a recession. january of 2009 the economy lost 800,000 private-sector jobs in one month. private sector j

he quoted them about -- >> reinhardt and reinhardt. >> a financial crisis takes longer term. i think that is a little bit of a misconception to most care as they think financial crisis means a bank crisis. at the time this bubble burst, people were saving nothing in the united states. we were drawing down our savings which is really unprecedented in history. individuals had great personal debts. the government is now running for the third consecutive year trillion dollar debt. we have taken over a huge mortgage problems and liabilities from banks and assumed that on the public sector. it is a simple thing. you either default on your debt, or you somehow carry the debt over a longer period of time and try to pay it off and reduce it. we are not close to paying down the debt as of today. i think we all need to understand that we are going to be in a long-term effort to move at ourselves out of the leveraging. the first thing you should do is not add more to the debt and acknowledge it will be a tough period of time. then we need to do everything possible that helps working amer

carmen reinhardt and dr. vincent reinhardt found in their research, and i quote from their findings, real per capita gdp growth rates are significantly lower during the decade following severe financial crises. in the 10-year window following a severe financial crisis, unemployment rates are significantly higher than in the decade that preceded the crisis. the decade of relative prosperity prior to the fall was importantly fueled by an expansion in credit and rising leverage that spans about 10 years. it is followed by a lengthy period of retrenchment that most often only begins after the crisis and lasts almost as long as the credit surge. . . >> and we have now had 20 consecutive quarters of growth or 20 consecutive months of growth. however, clearly we have to do better. we need considerably more job growth in order to fuel a stronger recovery. the unemployment rate remains far too high. as of october the unemployment rate was still hovering at 9%. although the recovery is not as strong as we would like, i

. >> to follow up on part of what you were saying -- you quoted, i believe, rinehart and reinhardt. this being a financial crisis takes the longer term -- i think that there's a little bit of a misconception. most think financial crisis means a bank crisis, but it means a debt financial crisis. in other words, people as a tiny bubble burst were saving nothing in the united states. we were actually showing -- we were drawing down our savings, which is really unprecedented in our history. individuals had great personal debt. the government is now running for the third consecutive year trillion-dollar debt, and we have taken over huge mortgage problems and liabilities from banks and assumed that on the public sector. it is a simple thing. you either default on your debt, which has an immediate short- term pain for ratification, or you somehow carry the debt over a long airtime and try to pay it off and reduce it. the problem is that when you do that, it is a depressant on the economy. money is being spent not to consume by or purchase, but consumed to pay down debt or pay interest on t